Gambling Webhosting and Licensing

Wednesday, 20 September 2017

As a premium hosting provider in Curacao and its first Cloud Facility, we often have enquiries from new start ups wanting to get going from here. We get contacted simply because we offer reasonable rates and can get our customers up within minutes of payment.

What has become a common theme with some of these startups is that many of them are writing their own gaming software.

The attraction to Curacao is to do with the cheap gambling licenses and its location to the US (for when they open up their doors) as well as to South America. This may seem like a great place for a new software developer type slash gaming company to get going from... but there are pitfalls.

The licenses are indeed affordable, but the surrounding costs are no different to any other jurisdiction. What you save on license fees you are going to cough up in all sorts of other areas and sometimes you will be paying a premium for them.

So this is a guide based on my experience and my recommendations from 14 years in the industry, having run my own gaming companies, written my own software, partnered with many different entities, built hundreds of gaming sites, the advice I have is not earth shattering, but it may just save you from going bust before you have a chance to really get started.

This is what I suggest you do:

1. Decide who you are?

Are you the butcher, the baker or the candle stick maker?

If you want to be all of the above, you better have a big budget and a pretty sound business plan or a large pre-existing customer base. There are a lot of gaming companies out there who have tried to be it all and have failed miserably. Most go out of business within the first 12 months due to unsustainable costs, unforeseen competition, or simply a lack of support from the industry.

So if you are a gaming software developer rather be the best gaming software developer you can be and team up with the best gaming operators you can find. The benefits are simply that you are not tied to the costs of running a gaming company, which will be your biggest challenge.

If you had dreams of owning your own brand and seeing your site up in the bright lights, all is not lost... you can achieve this dream and without the liabilities that will bankrupt you.

2. Decide what your responsibility is:

Many bright young developers with skills that far outreach many of their counterparts come to Curacao to realise their dream and end up being scuttled by one of the many problems in the gaming ocean.

For instance, a friend of mine who wrote amazing bingo software, setup with expensive servers, got his licenses, his trust company and sub companies and his management team, a nice PA, expensive offices, and, and...

And when it came to launch he could not accept a single payment. In fact, he only had enough cash to keep going for six months and during that time not one payment processor came to the party. Its not that they did not want to, it just takes time and sometimes for no apparent reason it all falls apart.
This is the hardest part of gaming... accepting payments from your customers. And even if his free players could pay, it would likely only have kept his nose just above water... A sad story... had he been smart, perhaps less greedy, he would have a very nice, organically grown business today built without the hype or the bells and whistles.

There are many pitfalls from scammers hitting your sites, running cards, huge chargebacks and their associated fees, to a lucky player winning it big and you do not have the cash to pay them... You won't be the first new casino for this to happen to and you wont be the last either.

Your responsibility at the end of the day is to manage your business like a business, manage your players expectations and ensure you keep everything ticking over.

To do this, it is important to know what your role and your responsibility is. If you know that, the rest is easy.

I am an operator, I am not a developer. I have hardware, licenses, companies, bank accounts, multiple payment facilities, company management, software vendors and lots of customers. Thats my role, I am not trying to be a developer or a white-label or an affiliate. I know my role, my job and my focus, thats why I have been around for a long time. Quietly ticking over, doing my thing.

My Job is to ensure that the ecosystem stays afloat. Customers are paid their winnings, card companies do not charge too much, customers are properly vetted, scammers are kept at bay, hardware stays online and all bills are paid.

Its really simple.

Think about it like this:
You, like many people before you, think you have the next great idea. And you may really have it, no judging here.

The point being is this, the odds are against you.

So you must decide what it is you want?
Is your goal to be rich quick or to have a long term business? In my opinion, a casino is just another business. It has a product, customers and competition. If you look after your product and your customers, it will look after you. In this industry, a big part of this is not being greedy.

If you are greedy, you are no good for the industry, and certainly no good for the people who use your service. And I can assure you there are plenty of those casino's out there who owe millions to their customers and amazingly, are still online.

Choice 1: Do it yourself

Roll the dice and take it all on. If you have the budget (or an investor), the staying power, and patience then this is your option. You own the pie, you decide what to do with it. Get a license, sub-license or white-label and off you go.

Bear in mind the problems you will face.

1. Your team will need to be paid (either out of your pocket, or your investors pocket).

2. Chances are in the first couple of years you will possibly earn just enough to cover your costs. So make sure you have the staying power... it is highly unlikely you will have your dream salary after a month or two... it just does not happen like that.

3. If you have an investor (mom or dad?), a rich uncle?, or even an institution... chances are you may have had to oversell your dodo as a golden goose and they expect their gold laced dream "dividends" to come rolling in the moment they agreed to be your benefactor. And they will start to complain when they find themselves paying the fourth months hosting bills, corporate costs, and other shenanigans you forgot to add to you business plan.

4. If you are married, have kids, or even an "understanding girlfriend", they are going to want you to get a "real job" pretty soon. Because you are going to find yourself wearing a lot of different hats. You are:

Customer support

Hosting guru

Accountant

Legal liaison

Debt collector

Bank chaser

Cheque writer

Marketing Guru

Trade Show Guy

Saint

and dare I forget, Software developer.

Choice 2: Be the developer

If you are a developer of a game or suite of games, in my opinion (and this is not set in stone) the best way to cut the cake is like this:

Do not lose focus from your corse passion, developing your games

Piggy back off a company such as ourselves who have all the required infrastructure to get your games up and running and in the right hands

Do not be greedy.

Simple yet sage rules. Lets go over each one of them.

1. If you try to take on too much, you will lose focus and end up creating something that is mediocre and it is likely the costs will put you out of business too. If you are a developer, be the best developer you can possibly be.

2. A big part of getting your game into reality is the infrastructure that makes it possible. From servers, to licenses to bank accounts. A new bank account costs 12 months of time... So you can either spend future time (i.e. yours) or past time (mine for example).

3. Ask for a reasonable return for your game and it is there for the long term. Ask too much and it will have a limited life span. This applies to sports books, horse racing, bingo software, casino software and stand alone games.

Where to go from here:

If you want to do it yourself, the road to doing this in Curacao is as follows:

You will need to find a good trust company to work with.

They will start the process of setting up your company and getting your license too.

Your license provider will determine the logistics of your infrastructure

Start the process of finding banks, processors, e-wallets etc. to work with.

If you want to work with us:

Get in touch

If we like your offering we setup a process to make your project available to other businesses and to pre-existing businesses.

You may have an investor who is willing to foot the bill but again, it makes no sense. At the end of the day you still have a third party involved in your business who is likely a silent partner.

Why not replace this silent partner with an operator? Someone who brings a lot of value to the table from the start, who wont be bitching for "dividends" and who will play a vital role in the success of your system.

How do earnings work:
Generally the software provider is paid a commission on sales. The more successful and established companies may receive 25% and the less established and organised companies may receive anything from 5 - 15%.

It really depends on the business model of the operator. The more you share the earnings potential the better retention of customers you will receive and the more sustainable your business will be. So its not all about the numbers...

Ask for too much and you may just find an operator dumping you for someone else or not promoting you system as much as he could.

Here is the kicker:
As a developer, there is nothing stopping you from signing up as a white-label. And because of your relationship with the operator, chances are you will get a very, very good deal.

You may end up with your own brand, promoting your own games, at no risk of going belly up, with no "angel investor" and at significant percentage of the earnings (less than what you would if you owned the thing outright, and more if you had taken on an investor...).

It is all swings and roundabouts... get in touch, we can help you get your idea online!

Rule number 1: Only use an investor as the last resort. Trust me on this, you do not want an investor unless there is a very good reason to haThe point is, I had to learn the hard way. People are people and in the majority of cases, even if they are your best friend, they will not live up to your expectations or standards or behave the way you would expect. So if you can do it alone... do it alone, cut your cloth to fit, put your head down, focus and do as much as you can from the start. It may seem like a waste of time, but in the long run it will be a lot faster.

Rule number 2: Don't tie yourself to un-workable contracts. Your bread and butter is getting your games out there and having people play them.

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Want to start your own casino?

To offer a casino from Curacao you will need:

1. A reliable trust/management company2. A license3. Servers4. And games to offer your audience

The smart way to start an online casino.

GamblingTec offers a hosted casino solution for as little as €29.95 per month.

CuracaoWebhosting.com offers affordable gambling hosting and casino hosting from Curacao. We are based in ECP (the islands premier data center) and host a variety of local and international casino company websites.

We work with BitCoin as well as fiat based casinos and would advise you to host your casino in a reliable offshore jurisdiction.

Bosnia and Herzegovina, is a country in Southeastern Europe located on the Balkan Peninsula. Sarajevo is the capital[1] and largest city.[5] Bordered by Croatia to the north, west, and south; Serbia to the east; Montenegro to the southeast; and the Adriatic Sea to the south, with a coastline about 20 kilometres (12 miles) long surrounding the city of Neum.

Corporate tax: 10%
Gambling tax: TBA%

Who manages E-Gambling in Bosnia?
The “Republicka Uprava Za Igre Na Srecu” (RUIS), which is the gaming regulatory board under the Ministry of Finance at Republika Srpska (an entity of Bosnia and Herzegovina)

Overview:
In January 2011, Republika Srpska granted the first Internet gaming license to WILLIAMS, a land-based bookmaker and slot hall operator. WILLIAMS’s online gaming site WWin (wwin.ba), offers sports betting and casino games to players throughout the region. Any player that is not registered or does not have an account in a bank within Republika Srpska will be banned.

To ensure winnings payout, organising games of chance fees, and other liabilities can be paid, an Internet games of chance organiser must have a dedicated deposit in the amount of 1.000.000 KM at the bank with a seat in Republika Srpska during the permission period or a banking guarantee in that amount. Consent for activating a banking guarantee for winnings payout is issued by the Board. If activated, the organizer is obliged to renew the banking guarantee within a maximum of 30 days.

Organisers must pay a fee in the amount of 4% of the basis, which consists of total stakes minus total winnings.

Licence Fee:

200.000 KM is paid for permission to organise Internet games of chance.

Licence Length:
TBA

Software Testing Requirements:
All equipment must be located in the territory of Republika Srpska, which refers to hardware and software used by players to participate in games of chance through the Global Internet Network (GIN); Internet games of chance organisers must ensure functional IT equipment which enables connection with the Board's IT system for supervision and control of financial activities

CuracaoWebhosting.com offers affordable gambling hosting and casino hosting from Curacao. We are based in ECP (the islands premier data center) and host a variety of local and international casino company websites.

We work with BitCoin as well as fiat based casinos and would advise you to host your casino in a reliable offshore jurisdiction.

Australian Capital Territory (ACT) (formerly, "The Territory for the Seat of Government" and, later, the "Federal Capital Territory") is a territory in the south east of Australia, enclaved within New South Wales. It is the smaller of the two self-governing internal territories in Australia. The only city and by far the most populous community is Canberra, the capital city of Australia.

The Australian Capital Territory, along with Victoria, is an Australian jurisdiction whose Internet gambling legislation accords to the Australian Capital Territory's National Model, which stipulates that licenses granted in one state or territory receive reciprocal status in the other states or territories. Interactive casino gaming may be licensed through the ACT, but the license-holder may not offer bets or market to people located in Australia.

Corporate tax: 30%
Gambling tax: TBA

The Australian Capital Territory (ACT) is an Australian jurisdiction whose Internet gambling legislation accords to the Australian Capital Territory's National Model, which stipulates that licenses granted in one state or territory receive reciprocal status in the other states or territories.

However, the Commonwealth Government has legislated in the area of online gambling with the Interactive Gambling Act 2001 (IGA). The IGA prohibits interactive gambling services, with online wagering and online lotteries being the only exceptions. Commonwealth laws override state and territory laws, so while the Commonwealth’s law is in effect, the ACT’s Interactive Gambling Act ceases to operate. This means the ACT does not regulate online gaming services.

Overview:

Security Requirements / Indemnity for Player Deposits:
Provider must hold player funds in an approved trust account.

Licence Fee:
$200,000 when license is granted
$100,000 every year after that

Software Testing Requirements:
Any software being used must be included within a “control system submission”. This includes everything to do with the licensees proposed gaming system and needs to be approved before any site is opened up. Any changes to this must go through the regulator.

Reporting Requirements to Regulators:
At the end of each financial year an audit must be produced within three months. The financial statements and accounts must include trading accounts (if applicable), profit and loss accounts, and a balance sheet.

CuracaoWebhosting.com offers affordable gambling hosting and casino hosting from Curacao. We are based in ECP (the islands premier data center) and host a variety of local and international casino company websites.

We work with BitCoin as well as fiat based casinos and would advise you to host your casino in a reliable offshore jurisdiction.

Republic of Belarus, is a landlocked country in Eastern Europe bordered by Russia to the northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Its capital is Minsk; other major cities include Brest, Hrodna (Grodno), Homiel (Gomel), Mahilyow (Mogilev) and Vitsebsk (Vitebsk). Over 40% of its 207,600 square kilometres (80,200 sq mi) is forested. Its strongest economic sectors are service industries and manufacturing.

Corporate tax: 24%
Gambling tax: TBA%

Who manages E-Gambling in Belarus?
Gambling activities in Belarus are licensed by the Ministry of Sport and Tourism under the presidential decree on gambling issued on January 10, 2005.

Overview:
On January 6, 2012 a law went into effect making it illegal for the citizens of Belarus to access any foreign websites or any site not hosted on a .by domain. Businesses and individuals cannot provide services through domains not registered in Belarus and owners of Internet cafes or similar facilities can face charges if Internet access is not monitored and reported for violations of the law.

Users of Internet cafes are required to identify themselves, and records of their computer usage are kept for one year. The law goes as far as to monitor individuals with guests in their homes who may visit a foreign website while visiting – the owner is bound by law to report it or face charges. Internet Service Providers are required to register with the Ministry of Communications and Information. ISPs are to provide details of their network, systems, and information resources and disclose all devices connected to the network such as computers and mobile phones. The charges against individuals are a misdemeanor and they can be fined up to $125 USD. The Belarus tax authorities, police, and secret police will be responsible for investigating and prosecuting offenders of the new law.

CuracaoWebhosting.com offers affordable gambling hosting and casino hosting from Curacao. We are based in ECP (the islands premier data center) and host a variety of local and international casino company websites.

We work with BitCoin as well as fiat based casinos and would advise you to host your casino in a reliable offshore jurisdiction.

The Czech Republic, in Central Europe, is known for its ornate castles, native beers and long history – from the Celtic and Germanic tribes of its founding to the Protestant Reformation and Communism. Prague, the capital, is home to a 9th-century castle, preserved medieval Old Town and statue-lined Charles Bridge. Český Krumlov is a living gallery of Renaissance-era buildings housing restaurants and shops.

Corporate tax: 19%
Gambling tax: 40%

Who manages E-Gambling in Czech Republic?
The Ministry of Finance

Overview:
The high taxation rates for online gambling makes it difficult for national operators though the tax rate is lower for foreign operators. Though you have to have an office in the Czech Republic to qualify for a license. Previous legislation does allow for the licensing of online sportsbooks.

There are five existing bookmakers in the Czech Republic they are listed below for reference:
Sazka, Synottip, Chance, ifortuna and Tipsport

Anti-Money Laundering Policy:
All operators must comply with AML legislation.

CuracaoWebhosting.com offers affordable gambling hosting and casino hosting from Curacao. We are based in ECP (the islands premier data center) and host a variety of local and international casino company websites.

We work with BitCoin as well as fiat based casinos and would advise you to host your casino in a reliable offshore jurisdiction.

British Columbia , also commonly referred to by its initials B.C., is a province located on the west coast of Canada. British Columbia is also a component of the Pacific Northwest, along with the U.S. states of Oregon and Washington. The province's name was chosen in 1858 by members of the Hudson's Bay Company. In 1871, it became the sixth province of Canada.

Corporate tax: 26%Gambling tax: TBA%

Who manages E-Gambling in British Columbia?
The British Columbia Lottery Corporation offers online lottery games

Overview:
British Columbia is waiting for the federal government to pass a Criminal Code amendment to allow single-event wagering. Nevada is the only jurisdiction in North America that takes legal bets on single games. The Criminal Code amendment has the support of the Conservative majority and would give B.C. the ability to offer the types of bets currently prohibited but available at online gaming sites outside Canada or within Nevada.
The Canadian Poker Network, established in December 2010, is the first poker network in North America. Using software developed by GTECH G2, the network is designed to handle over 10,000 concurrent players.

Security Requirements / Indemnity for Player Deposits:
Before being permitted to operate in the live environment, all gaming supplies used in the Province of British Columbia must be tested to the applicable requirements set forth in this Technical Standards Document.

Anti-Money Laundering Policy:
BCLC must ensure that the IGS software is designed to satisfy the following objectives:
a) The IGS must be capable of closing player accounts.
b) The IGS must be capable of imposing deposit limits on players.
c) The IGS must be capable of logging and reporting player account activity, including:
i) Opening and closing in short time frames, and
ii) Deposits and withdraws without associated game play.
d) In order to allow BCLC to return cheques to players and mark those payments with “Account Closure” or “Over-contribution”, as the case may be, the IGS must be capable of identifying cheques and/or Electronic Fund Transfers EFTs) separately from wins.
e) The IGS must be designed such that player accounts are not permitted to exceed a limit set by BCLC in consultation the GPEB.

CuracaoWebhosting.com offers affordable gambling hosting and casino hosting from Curacao. We are based in ECP (the islands premier data center) and host a variety of local and international casino company websites.

We work with BitCoin as well as fiat based casinos and would advise you to host your casino in a reliable offshore jurisdiction.

Finland is a
Northern European nation bordering Sweden and Russia. The Northern Lights can be seen from its
Arctic Lapland province, also home to the country’s main ski resorts. it is the eighth largest country in Europe
and the most sparsely populated country in the European Union.

The first
inhabitants of Finland were the Sami (Lapp) people, when Finnish speakers
migrated to Finland in the first millennium, the Sami were forced to move
northward to the arctic regions, with which they are traditionally associated.
The Finns' repeated raids on the Scandinavian coast impelled the Swedish King Eric
IX, to conquer the country in 1157. It was made a part of the Swedish kingdom
and converted to Christianity. On Jan.
1, 1999, Finland, along with ten other European countries, adopted the euro as
its currency.

Corporate tax: 20% Gambling tax: 30%

Who manages E-Gambling in Finland?
National Police Board

Overview:

There are three
companies that have legal gaming licences, domestic company Veikkaus, which is
state owned, holds the license for
sports betting and lotteries and has launched products for Internet and mobile
phone, while domestic company Fintoto, who is privately owned, holds the
license for horse race wagering and has also launched products on Internet and
mobile phone. A third domestic company, Raha-automaattiyhdistys, which is state
owned, holds the license for slot machines and casino games, This will broaden the scope of activities
which are considered to be marketing and to directly prohibit such
activities. No marketing directly or
indirectly of gaming or lotteries are allowed in Finland.

Additionally,
there are no criminal codes that outlaw the act of placing a bet with an
unlicensed operator. Therefore, Finish nationals are free to play at any of the
many gambling sites based out of other nations. Some of the biggest gaming
companies in the world accept Finns and even have Finnish language websites.

Even some of the
most legally conservative gaming companies such as Bet365 and 888 happily
accept customers from Finland.

Licence Length:
Up to 5 years

Anti-Money Laundering Policy:
All operators must comply with AML legislation in force.

CuracaoWebhosting.com offers affordable gambling hosting and casino hosting from Curacao. We are based in ECP (the islands premier data center) and host a variety of local and international casino company websites.

We work with BitCoin as well as fiat based casinos and would advise you to host your casino in a reliable offshore jurisdiction.